Media reports of Obama’s proposal outlined
Monday said he would permit Americans to withdraw up to
15%, with a $10,000 maximum, from their 401(k) or IRA
accounts without facing the typical
10% early-withdrawal penalties such distributions
carry.

Last week, McCain said rules requiring taxpayers to
begin drawing down their 401(k) or IRA at age 70 Â½ should
be suspended so such asset sales do not have to happen in
the middle of a down market (See
McCain, Obama Back
Loosening RMD Rules
).

“At a time when the ups and downs of the stock
market have rarely been so unpredictable and dramatic, we
also need to give families and retirees more flexibility
and security when it comes to their retirement
savings,” Obama said.

News reports said Obama also called for a temporary
$3,000 tax credit to companies for each new job created
in the United States over the next two years and a 90-day
moratorium on foreclosures for homeowners who are living
in their homes and making good-faith efforts to make
their mortgage payments.

The Illinois senator also wants the Treasury to help
unfreeze markets for individual mortgages, student loans,
and car loans, loans for multifamily dwellings and credit
card loans. All of the measuresshould be done immediately, either through existing
authority or emergency legislation, Obama asserted.